How has the digital economy benifitied record companies

choice - for the consume
R.C seels more product via download
downloads have no manufacturing costs
exploit back catalog
encrypt mp3's with DRM
digital rights management is an access rights tech which can be use by hardware manfatures, record companies and publishers to impose limitations on the usesage of digital content.
website interactive and builds loyalty sns

disadvanges of the digital economy
technphob
illegal file sharing

Record company expenses?

cost for concert production.
artist's advance (recoupable not returnable)recording costs
manufacture product: CD's vinyle, DVD
costs for concert production.
promotion + marketing
production music videos
staff/ O.H.
bands expenses
legal fees
illegal downloading
design(ers)

How do record companies make money?

music sales: albums, singles, comp
digital music sales: downloads (singles) ringtones , videos
licence
clothing, books, posters, games.
royalities: radio, adverts, tv, films.

tours, gigs (gate reciepts)
sponsorship and endorcements.
publishers: sampling royalties.
band websites ads, charge for premium content, subscription fees.
rights issue or shares.inv